Prime Minister Mark Carney's new approach to Canada's foreign policy can perhaps be distilled in one line: We take the world as it is, not as we wish it to be.
That was his response when asked about the deal struck with China on Friday, despite concerns over its human rights record and nearly a year after he called China the biggest security threat facing Canada.
The deal will see Canada ease tariffs on Chinese electric vehicles that it imposed in tandem with the US in 2024. In exchange, China will lower retaliatory tariffs on key Canadian agricultural products.
Experts told the BBC the move represents a significant shift in Canada's policy on China, one that is shaped by ongoing uncertainty with the US, its largest trade partner.
The prime minister is saying, essentially, that Canada has agency too, and that it's not going to just sit and wait for the United States, said Eric Miller, a Washington DC based trade adviser and president of the Rideau Potomac Strategy Group.
Canada's relationship with China, Carney added, had become more predictable than its relationship with the US under the Trump administration. He later wrote, in a social media post, that Canada was recalibrating its relationship with China, strategically, pragmatically, and decisively.
In Canada, reactions to the deal were swift. While Saskatchewan Premier Scott Moe hailed it as very good news for the agriculture sector, Ontario Premier Doug Ford criticized the decision, warning it could threaten jobs in the auto industry.
With the new deal, Canada's tariffs on Chinese EVs will drop significantly, allowing for increased sales from Chinese automakers. This strategic pivot indicates Canada's intent to fortify its trade independence and adapt to a changing global landscape, amid increasing tensions with its primary trading partner, the United States.
